I was in charge of financing and development at one of the largest development-finance institutions in the U.S. where we acquired companies and financed more than 450 businesses and projects using equity, debt and leases. Now I consult with corporations (including Medtronic and General Mills), governments (U.S. and state) and financiers. And I teach in MBA and Executive MBA programs around the world. After 12 years at the University of Minnesota, I am now at Florida International University. I write books, including "Business Financing: 25 Keys to Raising Money" (NY Times MBA Series), and "Bootstrap to Billions." I have engineering and business administration degrees. My next book is about how many of America's greatest entrepreneurs grew without, or by delaying, venture capital.

Why Nick Woodman Of GoPro Fits The High-Performance Entrepreneur Mold

Nick Woodman is the latest wunderkind from Silicon Valley who has gone from an idea to a billion in a high-tech nanosecond. And, even though it is tempting to think of him as unique, he fits the mold of the Silicon Valley billion-dollar entrepreneur.

#1. He started as an entrepreneur in his early 20s and started GoPro in his late 20s. Obviously, there is no right age to start a venture. But by and large, most entrepreneurs who built hugely successful businesses in emerging industries did so by starting their business when they were in their 20s. Starting with Bill Gates, Steve Jobs, and Michael Dell in the PC era, and moving on to Sergei Brin, Larry Page, and Mark Zuckerberg in the two waves of the Internet (mid-1990s when the Internet emerged and the mid-00s when the connected stage started), nearly all the billion-dollar entrepreneurs were in their 20s when they started their businesses. On the other hand, many of the billion-dollar entrepreneurs who started in established industries were in their 30s. Cameras are an old industry. The Internet is a relatively new one. Woodman seems to have straddled the old and the new and found the right age to start his business – when he identified the need and found a solution.

#2. Contrary to myth, nearly all the billion-dollar entrepreneurs grew to Aha before using VC. They delayed getting VC by using a lot of entrepreneurial smarts, their own sales skills, and a little family money to build the venture. Woodman got his initial seed capital from his parents and from his own savings.

#3. He knew how to sell. He was not someone who just identified a need or developed a technology but he knew how to sell. This was one of the most common skills possessed by billion-dollar entrepreneurs. They had sales skills and were able to sell their product, their company, and themselves. Along with money from his parents, Woodman raised money by selling jewelry that he picked up in Asia.

#4. He imitated and improved: One of the biggest myths in business today is that you have to innovate. But what exactly does innovation mean? Most of the time it is imitating and improving. Woodman started selling beads and shell belts, and then got the idea to add a strap to a camera to shoot outdoor activity. He used cameras from other manufacturers for his photography. But he could not find the right camera that fit his needs. So he improved on the existing cameras and started GoPro.

#5. By delaying VC, he was able to keep control of the business and the wealth he has created. The belief is that the venture-capital model requires coming up with a brilliant idea, going to VCs who claim to recognize brilliance when they see it, getting VC, recruiting a professional CEO because you are not qualified to build your business, and riding to an IPO. The reality is very different. Although most entrepreneurs who get VC cede control of their venture to VCs and their hired CEOs, billion-dollar entrepreneurs mostly delay getting VC and stay in control. Woodman fits this mold.

#6. Create a business model that helps differentiate the business. Towards this end, Woodman did not sell a camera. His business model was to sell an experience and share it with friends on the Internet. He helped this connected generation to show off their exploits and connect even more.

#7. Woodman did this with delayed VC in Silicon Valley.

MY TAKE: There is a venture-capital model for Silicon Valley. It involves imitating and improving in an emerging industry, getting to Aha, finding VC, staying in control, and soaring to wealth. Woodman is just the latest icon in this money-making machine. But the reality is that no other area of the world has been able to duplicate it. My findings based on interviews with billion-dollar entrepreneurs and hundred-million-dollar entrepreneurs is that other areas outside Silicon Valley should stop playing the Silicon Valley game and find new ways to win by growing capital-efficient entrepreneurs who can build successful growth ventures.

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